> While your point about embedded devices being a good target for> compilers is well taken, I think economics is going to limit the number> of platforms, and therefore compilers, to a few areas.> - routers> - video> - wireless> - (possibly) audio

The volume market for small embedded controllers is very large with high
level language compilers playing an important role.

> In the embedded arena, areas where compilers MAY still play a part fall> more in the area of hardware EDA tools: behavioral synthesis either to> FPGAs or silicon, hardware/software co-development, etc.

There is a real role for compilers here. The current costs of
development and manufacturing for this type of silicon have yet to
make it competitive for the main stream embedded micro-contoller
applications (Some current processors cost < $0.10 in volume). There
are currently several system on a chip initiatives to produce a hybrid
part computer part programmable logic component. There are some
processors being developed that are designed for machine generated
code. (Instruction sets that are extremely difficult to hand code. A
trade off for execution efficiency and code size)